The Raspberry Pi Model B+, the final evolution of the original Raspberry Pi, was an excellent value at just $35. When the Raspberry Pi Foundation launched its new flagship development board earlier this year, however, it neglected to discount the price of its predecessor. Fortunately, the foundation is finally doing something about it.

Founder Eben Upton said a side effect of the production optimizations that allowed them to hit the $35 target price with the Raspberry Pi 2 is that the Model B+ is now much cheaper to manufacture. As a result, they've slashed the price of the former flagship to $25. Upton noted that it may take a few days for the new pricing to go into effect across distribution partner websites.

The Raspberry Pi product line includes three different offerings with price points that now better reflect each unit's capabilities. The entry-level Model A+ can be had for $20, the Model B+ now sits in the middle at $25 and the Pi 2 is the most expensive (albeit most powerful) at $35.

The Raspberry Pi has had a tremendous impact on the development board movement and is responsible for spawning a wealth of competing products including the Kano, Intel's Minnowboard and Microsoft's Shark Cove.

Last week, Next Thing Co. launched a Kickstarter campaign for C.H.I.P., its $9 Raspberry Pi rival. The company obliterated its original $50,000 goal in no time, having raised over $1.2 million with 22 days remaining in the campaign. One can't help but wonder if Raspberry Pi's price cut is in response to C.H.I.P.'s success.